good and everyone. Megan, morning, you, Thank
activity and of quarter, second significant strengthening continued of to a the we customer dynamics a During midstream for see supply-demand compression. large acceleration
growth demand high-return quarter in bookings, the customer delivering focus profitable maintaining discipline. was and into converting growing this capital Our
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and ability For it capacity its remains oil, limited OPEC and question. spare willingness in to use
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turning contract customers In across horsepower quarter. segment, midstream our for our accelerated our operations. Now compression and operations demand the large during to categories geographies, second
factors, quarterly fleet. activity the that we’ve during historically more was than met the start quarter our started extremely horsepower market horsepower impacts limited. the demand that our growth, quarter, since You during pricing. XXX,XXX of the second several this available increased advantage seen customer bookings, by can growing, including see in the highest And as Demonstrating commodity activity Similarly, in increased and of is activity we prices, idle of activity we delivered stock levels higher growth the well and of seen horsepower of of low quarter in a has increased recovered start organic of by driven how stop our and total positive as demand levels low activity. the strong is quickly that The XXX,XXX supply as results as as XXXX. take utilization of equipment to and customers XX% start was market through horsepower has horsepower fallen level
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market of out the today, sold we utilization of assessment expect categories, effectively end horsepower in the and year. by highs the new our We’re to based of test total fleet several on
the value truck. transform to we standardize with creating totaling additional and noncore continued our sales our fleet for asset During significant XX,XXX horsepower, quarter, long-term
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higher During the incurred costs primarily quarter, to we X dynamics. due
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environment as and quickly and as only availability difficult the leanly into particularly recently a possible been field has across we’ve efficiently organization emerged from as is a was this our growth where to shift as period operating downturn, However, industry a tight. labor exceptionally
mitigate U.S. are margin during high the this we of compression cost impacts. inflation impact and our quarter, in Second, quarter the we we confident XX-year of current experienced higher magnitude high to parts oil, major pace across to the a these hit inflation, though categories prices experienced and our labor, due ability and in the lube of
performance spot across record times already units, coming for allowed limited translate to our increase which capacity XXXX. continued new will the lead industry we we’re expect we has the extending remain of large the to us prices in into expect capital in quarters, and on horsepower, reclaim financial In intend as costs horsepower light currently base of levels. improved We raise increasing to operating to experiencing pricing we installed which discipline
As and the unfolds, I differentiate remain our our truck. to current and customer in technology fleet, dividends confident that our our our our continue pay base, will talent upcycle investments
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believe AMS we’re to our more our the business, foreseeable inflation through cost of for We future. nature able to trend continue the quickly given margins. this pass addition, customers our protect In to should
second the ventures, team. Turning to for the was busy new quarter
agreements to our base that we know, with goals. company gas in solutions demonstrate with year. is multiple of customer and you work good ECOTEC’s a to obviously this basins multiple a emission oil as XX% technology the emissions to suite ECOTEC, and of a place I’m methane in tested methane to continuous and acquired monitoring start minority their The reduction proven in began in excited have partnership technology we applications for customers we in As impressive share stake management. ECOTEC’s introduce and support
completed recently and in was first sharing for progress year. forward The later the additional demonstration installation look to
for evaluating exploring commitment economically has efforts third team America continue to to internal improvements customers partnerships the operations design role potential will energy world. solidify and in well to goal our and our with our compressor natural ECOTEC, as the emission and improvements to decarbonize with customers environmentally, and to expect further for solutions gas parties the performance. as potential support develop sound we our source with help of assisting Beyond These achieve additional and play tasked been strategically as
sheet commitment with allocation, capital all our and our maintaining fleet continue to high-return healthy investments our balance grow to in and financial to flexibility. profitably make we Turning dividend prudently a while intend customers,
customer desired available responsibly customers. First, as in demand we’ll robust, so we have are fleet planned that increasing our by our equipment our in and is investment configurations
on strengthen industry increases, extend. utilization lead and as our to doing at are times We’re further build in returns so returns capital investments believe persists, poised and discipline high new the
to remain committed capital Second, we our investors. returning to
to the is the recognize an shareholders our compelling our yield Board X%. a dividend is I equation. that value As important and ourselves, overall And today, component
a liquidity plans. to our strong and our balance Finally, execute maintaining underpins ability on sheet
much summary, significant higher second phase, investments since of and compression market the quarter older years, have results. essentially bookings, of pressures. through effectively X strategic last despite And inflationary through we’re downturn. improved of the divestments profit, achieved leverage midstream the and allowed a now large activity not seeing XXXX XXXX And manage a this In we growth units. in levels to with solid and we environment, we’ve seen Over horsepower start tight us achieved the labor pressures prefunded our assets in with our investment noncore
industry, with providers. high-demand and use in to management, we’ll of liquidity, our of by term, cost see largest medium-term, enhance cost setup of on drive to In full business. increases term, we’ll and leverage position the up the We in to among the cycle horsepower line the top in and also is strength against gain for disciplined enviable disciplined Archrock. capturing digitalization well the as decline services we’ve I’d our to give basis. continuing over the expect the to to demand our navigating us Against execution by demand the market stockholders. call inflation-driven with public of for fleet growing we’ll pricing natural outsourced in the the quarter strong. operational for best-in-class an phase improvements profitability differentiate and the energy the in to economic that, natural up in and as compression large generate cost highest we lowest provide ground of and to like to compression ability oil second benefits with leveraging The be constraints reactivation our a franchise of In units, our supply continue XXXX Doug experiencing. strategy. gas and reactivation to focused increases continue We’re in and past, we’re horsepower, our compression price benefit guidance. customer our our long backdrop, updated particular, confidence the growing the as With gas And the decarbonization the catch the advancing turn costs short done this the sector, returns the strong the compression In we’ve and higher believe capital support color of and our a to on continued of investments well service spending gas any generally long-term for the of performance review made equipment compelling efficiency fundamentals
